How does the DMP work

ClaireF27

I have started the first steps with PayPaln - have my interview on Monday evening.

Do they work out what you can afford to pay your creditors from the money left after house bills/mortgage, etc?

How much do you usually pay? Is there a different amount if you do it as a couple as opposed to two indvidiuals? Would it be better to do it separately as most debts are in either of our names

thanks in advance for advice

Numpty_Monkey

I did mine (long story) through CCCS
They took my bills and expenditure into account and made "recomedations" of what is adviced to spend
based on just me , my food bill was £250 a month, the recomention was £140, with tips from here I got it nearer £100, the extra paid for a few bevvies:whistle::shhh:or a few trips away:j
The budget does give you flexability(sp) but the crucial thing is to budget, it might be tough at the start but it does get easier;)

Always remember "They can't have what you ain't got":A

Tixy

Hi Claire

Payplan will talk you through it and see whether you are best to do a joint or individual DMPs but essentially the amount you pay is the amount you have left over after paying for priority expenses etc - if you have seen or used the Statement of Affairs calculator here the amount someone would be expected to pay is the figure 'amount left for debt repayments', although as Numpty Payplan may suggest you amend some figures to allow you a little breathing space.

If you haven't yet looked at the SoA calculator here is a link - http://www.makesenseofcards.com/soacalc.html

Deep_In_Debt

Yep, the monthly amount that you repay depends on your surplus after your essentials i.e. mortgage/rent, utilities, council tax etc have been paid. I'm on a dmp with CCCS and have been since January last year. Started on about £250pm and now paying £500pm due to change of job and being paid a lot more.

Like Numpty, I live below the recommended grocery amount - I live on about £70-£80pm and don't go without and save as much as I can so that I can make f&f settlements on smaller debts along the way. Budgeting and being a bit "savvy" with your dosh is the way to go.

ClaireF27

I presume a DMP affects your credit though and you wont be able to get any credit for the term of your DMP or afterwards.
How does it work with a mortgage as ours is due in 2 years time?

Deep_In_Debt

It will affect your credit. It will be trashed for the term of the dmp and for 6 years after your last payment.

You may be able to re-mortgage but may not get the best rates going.